The auditor should perform all of the following procedures related to the physical inventory count except
A)Document the first and last tag numbers used
B)Take notations of all items that appear to be obsolete or are in questionable condition
C)Make counts of all items and record the counts for subsequent tracing into the client's inventory compilation
D)Observe whether there is any physical movement of goods during the counting of the inventory

Question

Quizplus · Accepted Answer

All the other procedures listed (documenting tag numbers, noting obsolete/questionable items, observing for any movement of goods) should be performed by the auditor to ensure the accuracy of the physical inventory count, but the actual counting and recording of counts is typically the responsibility of the client's staff. The auditor may observe and verify the counting process but should not perform the actual counting.

The Auditor Should Perform All of the Following Procedures Related